Stamp Duty Calculator
Stamp duty is a tax paid when you buy property. It can be a substantial amount. You must pay it within 14 days of the purchase to avoid extra penalties so it is vital to know how much you will have to pay before you commit to your purchase. Use our handy calculator for an indication of how much you are likely to have to pay.
What is Stamp Duty?
Stamp Duty, or ‘SDLT’ is a tax that you must pay when you buy a house, flat, land or other buildings in England and Northern Ireland. Wales and Scotland have similar taxes with slightly different rules. Broadly speaking, the amount of stamp duty you pay will depend upon the value of the property you are buying, and also the use of that property. There are some reliefs and exemptions available.
When is stamp duty paid?
You must send your completed stamp duty return with HMRC (the UK tax authority) within 14 days of purchasing your property. The stamp duty must be paid within this time period, too.
Can I not pay stamp duty?
If stamp duty is due, you must pay it. If you do not then HMRC will charge you penalties. However, stamp duty is only payable if the value of the property you have bought is over £125,000, or over £150,000 if it is a business property. There is also an exemption if you are a first time buyer. If you are a first time buyer of a property worth less than £300,000 you will not need to pay any stamp duty. Make sure that you still file your return however, as there are penalties even if no stamp duty is payable.
Buy to let stamp duty
Stamp duty is payable on buy to let properties. Since 2016 all those buying buy to let properties must pay an extra 3% on top of the usual stamp duty rate for the property. This means that buy to let landlords will pay at least 3% of the transaction value in stamp duty even for properties worth less than than the usual £125,000 starting point for the tax.
Stamp duty second home
If you are buying a second home then you will need to pay additional stamp duty on the purchase. The additional property rate is currently an extra 3% on top of the stamp duty you would ordinarily pay on the property.
Stamp duty tax bands
The amount of stamp duty you must pay is calculated in bands. These can change from time to time, usually in each year’s budget. At the moment stamp duty is payable at the rate of 2% on the value of a freehold property between £125,000 and £250,000, at 5% on the portion between £250,001 and £925,000 and then at 10% on any value between £925,001 and £1.5 million. Any value over £1.5 million is charged at 12%. There are different rates for leasehold properties and for non-residential property.